Jason Company offered a contest in which the winner would receive P1,000,000 payable over twenty years.

On December 31, 2019, Jason Company announced the winner of the contest and signed a note payable to the winner for P1,000,000 payable in P50,000 installments every January 31.

On December 31, 2019, Jason Company purchased an annuity for P418,250 to provide the P950,000 prize remaining after the first P50,000 installment which was paid on January 31, 2020.

• On December 31, 2019, what amount should be reported as note payable-contest winner, net of current portion?(SHOW A DETAILED SOLUTION)